Ganfeng Lithium Swings to Profit in Q1 as Lithium Prices Rise, EV Demand Strengthens

Gate News message, April 17 — Ganfeng Lithium, a major lithium producer listed in Hong Kong and Shenzhen, expects Q1 net profit of 1.6 billion to 2.1 billion yuan (approximately US$235 million to US$308 million), compared with a loss of 360 million yuan (US$52.8 million) in the same period a year earlier.

The turnaround was driven by higher lithium prices and stronger orders for lithium products. Demand for lithium salts from downstream customers remained robust, supporting the company's earnings recovery.

Analysts attributed rising fuel costs linked to Middle East tensions as a factor that could accelerate consumer adoption of electric vehicles. Ganfeng is also strengthening its position through vertical integration, targeting a lithium self-supply rate above 50% in fiscal 2025, which exceeds industry averages. The company's Goulamina project in Mali helps buffer raw material cost volatility. China dominates global lithium processing, holding 76% of worldwide lithium smelting capacity as of 2022, while the U.S. is investing in alternative supply chains, including a US$2.23 billion loan to Lithium Americas for its Thacker Pass project in Nevada.